Economics : Rates of Return/ IRR
Showing 3 Results
IMPROVED DEEP BASIN DRILLING ECONOMICS
Improved operational scale of Vermilion's core Deep Basin asset enables
lower costs and improved full-cycle margins
Upper Cretaceous
o Acquisition lands attract capital within pro forma portfolio with higher
half-cycle returns compared to Vermilions existing Deep Basin assets
Adds inventory depth to maintain 75,000 boe/d production level in the
Deep Basin for 15+ years
DEEP
DEEP BASIN
BASIN IRR
IRR BY
BY ZONE
ZONE
Spirit River
120%
70%
60%
100%
BEFORE TAX IRR(1)
(1)
50%
80%
Lwr Mnvl/ Jurassic
40%
60%
30%
20%
40%
10%
20%
0%
0%
Upper Cretaceous Spirit River Lower Mannville / VET 2025
Jurassic Deep Basin*
VERMILION
VERMILION WESTBRICK
WESTBRICK
(1) Before tax IRR based on estimates provided by McDaniel & Associates Consultants Ltd (McDaniel) and using three consultant average October 1, 2024 pricing assumptions. IRRs shown represent
weighted average by formation, based on the number of drilling locations assessed and the IRR associated with those locations. * VET 2025 represents before tax IRRs for planned 2025 Vermilion
development, using three consultant average October 1, 2024 pricing assumptions. Three consultant average October 1, 2024 pricing assumptions used in reserve estimates as follows: 2025 WTI
US72.00/bbl, AECO C2.50/mmbtu, CAD/USD FX rate 0.747; 2026 WTI US74.98/bbl, AECO C3.36/mmbtu, CAD/USD FX rate 0.753; 2027 WTI US76.65/bbl, AECO C3.62/mmbtu, CAD/USD FX rate 0.753. 35
Vermilion Energy Inc.
April 2025
PEYTOS RETURNS ROBUST RESULTS
Wells On Stream to end-Dec:
2024 Drilling Program Year to Date IRR on Acquired Lands (33 wells): 64%
66 gross / 64.3 net Price Deck: Flat, CA3.00/GJ, US70/bbl WTI IRR on Legacy Lands (33 wells): 50%
Full Cycle Economics - 1.2MM/well
Entire 2024 Program Forecasted BTAX IRR: 57%
200%
Notikewin : 105%
Dunvegan : 57%
Wilrich : 42%
Falher : 30%
150%
100%
Full Cycle BTAX IRR
50%
0%
Peyto reviews the outcomes of all wells and
burdens them with full cycle capital costs the Drilled on Repsol Lands
good, the bad, and the ugly are all shown.
-50% 16
Peyto Exploration & Development Corp
April 2025
30
Gas Development Location
Inventory and Economics(1) Mar 2025
AB Deep Basin AB Deep Basin NEBC Gundy NEBC North NEBC South PRH PRH
North & West South MNTN MNTN MNTN Charlie Lake Montney
Horizontal Horizontal Horizontal Horizontal Horizontal Horizontal Horizontal
Total Well Costs
(Drill, Case, Complete, Million) 5.31 5.81 4.63 4.49 5.53 3.10 4.39
Average Reserves/Well (bcfe) 6.8 5.6 5.1 7.7 6.6 2.5 3.4
Lateral Length (metres) 2,250 2,900 2,300 2,400 2,650 2,250 2,250
Year 1 Production Rate (2) 5.4 mmcfepd 3.8 mmcfepd 4.3 mmcfepd 4.5 mmcfepd 4.4 mmcfepd 262 boepd 568 boepd
Development Cost/boe 4.69 6.20 5.41 3.50 5.00 7.53 7.77
Operating Expenses/boe (3) 3.23 4.92 2.14 6.37 2.49 9.10 7.53
Net Present Value 10% (000's) 6,001 6,003 8,768 9,012 8,268 4,811 4,124
Internal Rate of Return (4) 76% 63% 338% 184% 104% 146% 124%
Payback Period (months) 17 18 7 10 14 10 12
Year 1 Gas Price (5) 2.11 2.27 1.95 1.90 2.05 2.04 2.04
Future Development Locations (6) 14,267 527 1,188 2,901 2,820 1,274 920
Notes:
(1) All amounts are before tax.
(2) Assumes on production date of January 1, 2025.
(3) Average operating expenses over the initial five years of production.
(4) Internal Rate of Return calculation is based on monthly cash flows.
(5) Independent Reserve Engineer January 1, 2025 escalated price forecast, adjusted for transportation, quality and heat content.
(6) See Schedule A.
Tourmaline Oil Corp.
March 2025